News that Unilever (ULVR) has offered to boost its stake in Indian subsidiary Hindustan Unilever from 52.4 per cent to 75 per cent through a share purchase should come as no surprise to investors as it reflects the global consumer goods giant's strategy to focus on faster-growing emerging markets.
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Unilever has offered to pay 600 rupees (£7.2) a share - a 26 per cent premium to the one-month average share price - and news of the offer caused Hindustan's shares to jump 17 per cent on yesterday's closing price to 584 rupees. If it goes ahead, the deal would increase Unilever's share in the subsidiary to the maximum allowed by the India authorities and would cost €4.1bn (£3.47bn), paid for in cash.
